Low-Mileage Auto Insurance Discount: How Much You Can Save in 2023
If you drive less than average, you might be eligible for a low-mileage auto insurance discount. Currently, 19 major insurance providers offer affordable low-mileage auto insurance discount rates separate from pay-per-mile insurance programs. Typically, low-mileage insurance discounts reduce your annual auto insurance rates by 18%. However, qualification rules and savings amounts vary widely from company to company.
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Kristen Gryglik
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Kristen is a licensed insurance agent working in the greater Boston area. She has over 20 years of experience counseling individuals and businesses on which insurance policies best fit their needs and budgets. She knows everyone has their own unique needs and circumstances, and she is passionate about counseling others on which policy is right for them. Licensed in Massachusetts, New Hampshire,...
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UPDATED: Nov 10, 2023
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Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our auto insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different auto insurance companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
UPDATED: Nov 10, 2023
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our auto insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different auto insurance companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
On This Page
- Currently, 19 major insurance companies offer a low-mileage auto insurance discount
- On average, drivers save 18% on their premiums with this discount
- Qualification rules vary from company to company, but typically you must drive less than 5,000 miles annually to earn this discount
In the modern world, it’s common for people to own cars used less than 50 miles per day that still need to be insured. If you aren’t driving as often, you might qualify for a low-mileage auto insurance discount.
Separate from usage-based insurance, keep reading to discover what companies offer this savings opportunity and learn how you can qualify for low-mileage insurance discounts.
After comparing low-mileage auto insurance discount rates, remember to enter your ZIP code into our free tool above to receive actual quotes from reputable providers in your area.
What companies offer a low-mileage auto insurance discount?
If you want to buy low-mileage discount auto insurance, you have plenty of companies to compare.
Currently, 19 different national providers offer this discount to drivers.
Take a look at a full list below:
- AAA
- Allstate
- American Family
- Amica
- Country Financial
- Esurance
- Farmers
- Geico
- Liberty Mutual
- MetLife
- Nationwide
- Progressive
- Safeco
- State Farm
- The General
- The Hanover
- The Hartford
- Travelers
- USAA
However, eligibility requirements and savings amounts vary widely from company to company.
Your age, driving record, and coverage needs also impact your insurance costs.
Therefore, the best low-mileage auto insurance discount company for one driver might not be the same for their neighbor.
To successfully earn your cheapest rates, compare quotes online from multiple companies and remember to ask about additional auto insurance discounts.
Read More: The Hartford Auto Insurance
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What is a low-mileage auto insurance discount?
A low-mileage discount rewards drivers with a slight rate reduction because driving less puts you at a lower crash risk.
But what is considered low mileage for auto insurance? The truth is, qualification rules vary widely from company to company, and each provider uses different auto insurance mileage brackets.
For example, some providers automatically apply the discount if you drive less than 50 miles a day, or roughly 18,250 miles annually.
However, with Allstate, you must drive fewer than 8,000 miles per year. With Liberty Mutual, that number drops to 5,000 miles.
This discount is also not available in every state. Progressive only applies it in California and Texas.
With USAA, only drivers aged 29 and older earn this discount.
Contrary to popular belief, low-mileage discounts usually are not connected to telematics or pay-per-mile insurance programs, also known as usage-based insurance.
According to the National Association of Insurance Commissioners (NAIC), telematics tracks both mileage and driving behaviors using either a mobile device or equipment installed in the car.
Low-mileage discounts, on the other hand, rely solely on your odometer readings.
However, the exception is Travelers, where you only earn savings by enrolling in the Travelers IntelliDrive program.
Low-Mileage Auto Insurance Discount: The Bottom Line
If you work from home or are just driving less often these days, it’s worth asking your provider about a low-mileage auto insurance discount.
This discount is also excellent for people who are insuring two cars, primarily if one vehicle gets used less often.
Now that you’ve learned about the affordable low-mileage auto insurance discount, you can enter your ZIP code into our free tool below to receive quotes from the best companies near you.
Frequently Asked Questions
What is a low-mileage auto insurance discount?
A low-mileage auto insurance discount is a type of discount offered by insurance companies to policyholders who drive their vehicles less frequently. It rewards drivers who have a lower annual mileage with reduced insurance premiums.
How much can I save with a low-mileage auto insurance discount in 2023?
The amount you can save with a low-mileage auto insurance discount in 2023 varies depending on the insurance company and your specific policy. However, on average, you can save up to 10% to 20% off your insurance premium by demonstrating low mileage.
How do insurance companies determine low mileage?
Insurance companies determine low mileage by either relying on self-reporting from policyholders or by using telematics devices installed in vehicles. Self-reporting typically involves providing an estimate of your annual mileage, while telematics devices track your actual mileage through GPS technology.
How do I qualify for a low-mileage auto insurance discount?
To qualify for a low-mileage auto insurance discount, you generally need to meet the mileage requirements set by your insurance company. These requirements can vary, but they often consider factors such as your daily commute, the purpose of vehicle use, and the total annual mileage driven.
What are the pros of a low-mileage auto insurance discount?
- Cost savings: By driving less and qualifying for a low-mileage discount, you can potentially save a significant amount of money on your auto insurance premiums.
- Incentive for reduced driving: The discount serves as an incentive for drivers to reduce their mileage, which can lead to lower fuel consumption and less wear and tear on the vehicle.
- Fair pricing: Drivers who use their vehicles sparingly can benefit from discounted rates that reflect their reduced risk of accidents or incidents.
What are the cons of a low-mileage auto insurance discount?
- Limited flexibility: Some insurance companies may impose strict mileage limits, which can be problematic if you need to drive more than anticipated or if your circumstances change.
- Accuracy challenges: Self-reported mileage can be subjective, leading to potential discrepancies between the reported mileage and the actual usage. This could impact your eligibility for the discount.
- Privacy concerns: Telematics devices used to track mileage may raise privacy concerns for some individuals who are uncomfortable with having their driving habits monitored.
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Kristen Gryglik
Licensed Insurance Agent
Kristen is a licensed insurance agent working in the greater Boston area. She has over 20 years of experience counseling individuals and businesses on which insurance policies best fit their needs and budgets. She knows everyone has their own unique needs and circumstances, and she is passionate about counseling others on which policy is right for them. Licensed in Massachusetts, New Hampshire,...
Licensed Insurance Agent
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.